IDEAS home Printed from https://ideas.repec.org/p/crf/wpaper/11-15.html
   My bibliography  Save this paper

Production intermittence in sport markets

Author

Listed:
  • Augusto Ruperez Micola
  • Albert Banal-Estanol

    (LSF)

Abstract

This paper analyses the influence of production intermittence on spot markets. We use both game theory and an adaptation of the Camerer and Ho (1999) behavioural model. Controlling for costs, we find that intermittent technologies yield lower prices when incumbents have individual market power, but are higher when they do not have it. This happens both when firms are risk-neutral and risk-averse, and also under different intermittence and ownership configurations.Replacing high-cost assets with low-cost ones results in prices that are higher than when they are left to co-exist. The findings have implications for, among others, wholesale electricity markets, in which wind power is increasingly important.

Suggested Citation

  • Augusto Ruperez Micola & Albert Banal-Estanol, 2011. "Production intermittence in sport markets," LSF Research Working Paper Series 11-15, Luxembourg School of Finance, University of Luxembourg.
  • Handle: RePEc:crf:wpaper:11-15
    as

    Download full text from publisher

    File URL: http://wwwen.uni.lu/content/download/53159/634728/file/Production%20intermittence%20in%20spot%20markets_2011%20(15).pdf
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:crf:wpaper:11-15. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martine Zenner). General contact details of provider: http://edirc.repec.org/data/sfsculu.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.